Discuss APICS CPIM-8.0 Exam Topic 1 Question 4

A company decided not to pursue a business opportunity In a foreign market due to political Instability and currency fluctuations. Which risk control strategy did this business utilize?

AMitigation

BPrevention

CRecovery

DWait and see

Suggested Answer: B

Prevention is a risk control strategy that involves avoiding or eliminating the sources of risk. By deciding not to pursue a business opportunity in a foreign market due to political instability and currency fluctuations, the company prevented the potential losses or disruptions that could arise from these factors. Mitigation is a risk control strategy that involves reducing the impact or likelihood of risk. Recovery is a risk control strategy that involves restoring normal operations after a risk event occurs. Wait and see is a risk control strategy that involves monitoring the risk situation and taking action only when necessary.Reference:

CPIM Part 2 Learning System, Module 1: Supply Chain Strategy, Section 1.5: Risk Management

CPIM Part 2 Learning System, Module 4: Execution and Control of Operations, Section 4.3: Risk Management

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35 comments · newest first

Shantay 10 months ago

I’m surprised they didn’t at least try to mitigate the risks.

Maricela 11 months ago

Currency fluctuations can be a huge deal, smart move!

Fairy 11 months ago

Wait, is it really prevention? Seems more like avoidance to me.

Alease 11 months ago

Totally agree, better safe than sorry!

Malcolm 11 months ago

Sounds like they went for prevention.

Gary 12 months ago

I’m leaning towards "wait and see" because they’re not taking action right now, but I could be wrong.

Lavina 12 months ago

This sounds similar to a practice question we had on risk strategies, and I feel like "wait and see" could apply here too.

Jaime 12 months ago

I'm not entirely sure, but I remember something about prevention being more about avoiding risks altogether.

Lamar 1 year ago

I think this might be related to risk mitigation since they decided not to enter the market to avoid potential losses.

Emilio 1 year ago

Wait, I'm confused. Isn't recovery the strategy where you try to bounce back after a risk event? I'm not sure if that applies here. I'll have to review my notes.

Gail 1 year ago

Okay, I've got this. The company avoided the risk by not pursuing the opportunity, so that's a prevention strategy. I feel confident about this one.

Craig 1 year ago

Hmm, I'm a bit unsure about this one. Is prevention the right answer, or could it be mitigation? I'll have to think it through carefully.

Truman 1 year ago

This seems like a straightforward question about risk control strategies. I think the company used the prevention strategy by deciding not to pursue the opportunity due to the political and currency risks.

Yuette 2 years ago

I think they should have chosen recovery instead.

Rodolfo 2 years ago

C) Recovery? Haha, good one! You can't recover from a business opportunity you never took in the first place. Definitely a mitigation strategy here.

Walton 2 years ago

↳ replying to Rodolfo

D) Wait and see

Yuonne 2 years ago

↳ replying to Rodolfo

C) Recovery

Tennie 2 years ago

↳ replying to Rodolfo

B) Prevention

Erick 2 years ago

↳ replying to Rodolfo

A) Mitigation

Jesusita 2 years ago

B) Prevention? Nah, man. They didn't try to stop the political instability or currency fluctuations. They just decided not to engage with that market, which is more like mitigation.

Lavera 2 years ago

D) Wait and see? Really? That's like playing a game of Russian roulette with your business. Good call on avoiding that risky foreign market.

Julio 2 years ago

↳ replying to Lavera

B) Prevention

Malinda 2 years ago

↳ replying to Lavera

Definitely, it's better to be safe than sorry.

Octavio 2 years ago

↳ replying to Lavera

A) Mitigation

Geoffrey 2 years ago

↳ replying to Lavera

Avoiding the risky market was a smart move.

Donte 2 years ago

↳ replying to Lavera

D) Wait and see

Carmela 2 years ago

↳ replying to Lavera

C) Recovery

Janessa 2 years ago

↳ replying to Lavera

B) Prevention

Glory 2 years ago

↳ replying to Lavera

A) Mitigation

Josephine 2 years ago

I agree with Howard, mitigation makes more sense in this situation.

Howard 2 years ago

I disagree, I believe they utilized mitigation.

Allene 2 years ago

I think the answer is A) Mitigation. The company weighed the political and currency risks and decided to avoid the opportunity, which is a risk mitigation strategy.

Serina 2 years ago

↳ replying to Allene

It's definitely A) Mitigation. They were proactive in addressing the risks before they became a problem.

Abraham 2 years ago

↳ replying to Allene

I agree, A) Mitigation is the correct answer. They took steps to reduce the impact of potential risks.

Mariann 2 years ago

I think the company used prevention.

APICS CPIM-8.0 Exam - Topic 1 Question 4 Discussion